Divide between rich and poor households widens

Australian households are growing wealthier, but the gap between rich and poor is widening, according to ABS data.

The average wealth of an Australian household grew 14% to $720,000 between FY06 and FY10, the statistics show.

But while the wealthiest 20% of households have increased their average net worth by 15% over this period, the poorest 20% only accumulated an extra 4%.

The poorest 20% of households had an average net worth of only $32,000, just 1% of total household wealth.

The richest 20% by contrast accounted for two-thirds of the total, or an average of $2.2 million per household.

Average net worth varies by state, with Queensland, South Australia, and Tasmania all falling below the national average. Households in capital cities are more likely to have a higher than average net worth.

Around 2.7 million Australians own their homes outright, while 3 million are under a mortgage. The average value of a directly-owned home, at $541,000 is slightly higher than that of a mortgaged house.

In total, over two thirds of Australian households are owned either directly or through a mortgage. Just over one in five households also own property other than the dwelling in which they live.

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